The importance of quality seed in productivity of legumes and oil seeds are well known, but the present seed replacement rate of these crops are very low. It is important for farmers, particularly those who are resource poor, to have control over their seeds. This requires knowledge and appreciation of alternative technologies for crop and seed production and other related issues. The sustainability of rain fed legumes cultivation is heavily dependent on the availability of seed of locally adapted, farmer-preferred varieties at the right time in required quantities and at the right price to meet the demand of resource poor farmers. A novel approach of establishment of seed producers companies (SPC) can address the issue. This can be effectively achieved by promoting rural entrepreneurs, seed producers & community based organizations (CBOs) in seed production system at the village level. It is planned to effectively to nurture large number of rural entrepreneurs, farmers and benefit more number of farmers by commercialization of new seeds and to access the locally acceptable varieties and cultivars of seed. The private investments and MNCs are not so positive towards this segment of business due to high logistics, involvement of large volumes and very thin margins. In this context, an unique approach like establishment of producer companies by farmers and rural entrepreneurs at decentralized locations to cater the needs of surrounding 30-50 villages seed requirements achieved.

Problem

Rain-fed farming/Dryland Agriculture: The rain-fed/dry land agriculture plays vital role in the country economy. Available data show the overall growth rate of crop production in the dryland sector was nearly half of what it was in irrigated sector. The output of coarse cereals, pulses and oilseeds (covering about 45% of total cropped area and grown mostly in the dry lands) fell and the rate of growth of their yields decelerated considerably. Yield is never the only objective in dryland agriculture. Dry-farming is an exercise in constrained optimisation of multiple objectives. These include household food security, fodder and firewood needs, minimum cash flow, use of available household labour etc. The risk of rainfall failure is the most enduring concern. These areas are therefore otherwise referred to as ‘not so favoured areas for agriculture’. The typical features leading to low productivity of dryland farming are • Uncertainty of weather conditions imposing multiple risks. • Availability of quality seeds at right time • Low water potential (surface or ground). • Low levels of soil fertility and increasing desertification. • Low levels of private investment in land improvement and cultivation. Importance of Pulses and Oil seeds: The pulses and oil seeds play important role in human diet and have industrial usage as well. Generally rain-fed farming in India includes majority of pulses and oil seeds in their cropping pattern. Pulses form the cheapest protein and vitamin supplement to humans as well as livestock in their diet. Increase in productivity of pulses and oil seeds create considerable impact on the growth of agricultural sector as whole and increase in GDP as these crops are mostly grown in not-so-favoured socio-economic regions. Drylands in this country constitute more than 70% of the cultivable lands and despite several odds stacked against them, produce about 42% of the country’s food. It is reported that nearly 81% of pulses and 90% of oilseeds grown in the country come from these areas. At present, in India, pulses are grown in 23.8 million hectares with production of 15 million tonnes, The productivity is around 600 Kg per hectare which is very low compared to world standards. 85% of pulse production area is under rain-fed, thus, even a marginal increase in productivity can significantly improve the socio-economic conditions of the small and marginal farmers engaged in these crops as well as help the country in saving scarce foreign exchange with reduced dependence on imports. Importance of seeds: The seeds form the foundation of all agriculture. Seed is consistently recognized as the most important and least expensive (groundnut being an exception due to its high seed rate for sowing) of cash inputs for farming. Seed security is a pivotal component to food and nutritional security, Good quality seed of improved varieties alone can cause significant improvement in crop productivity leading to increased availability of pulses and edible oil, particularly to the poorer sections of the society. Further, improved varieties provide an efficient vehicle for transfer of other improved crop management technologies. In spite of significant achievements made in legumes through crop improvement research and development, traditional varieties and land races still dominate the farming in the country. The vertical seed replacement rate in pulses remains low as compared to other major crops for a variety of reasons. Limited access for farmers to improved legumes varieties is one of the major factors contributing to low farm level productivity. Without improving access to improved seed through effective, farmer-friendly seed system, this scenario is not likely to change. Compared to cereal crops (700-800 in pearl millet and 200 in sorghum), the seed multiplication ratio in legumes is low (chickpea: 10-20, pigeonpea: 20-30 and groundnut: 8-10). The situation in groundnut is worst because of its very high seed requirement (100-120 kg/ha).No single agency can, therefore, fulfill the demand of quality seed of improved varieties of legumes with the existing practice of seed production and supply, The strategies devised by the government agencies in the past to address these issues have either failed to be initiated or were unsustainable. The quality and integrity of the seed bought in local markets is most often un\certain and inferior resulting in low productivity of legumes. It is imperative to revisit the seed issues and in consultation with relevant stakeholders, to develop strategies and appropriate approaches for addressing the constraints relating to sustainable multiplication and distribution of improved legume seeds. The major constraints in improving the productivity of rain-fed legume farming are.. - On time availability of good quality seed - Low seed replacement rate (SRR) - Low seed multiplication rate (SMR) - Un predictability of monsoon showers - Poor accessibility to new technology - Poor resources of farmers For improving the legume production in the country, the assured and timely availability of seed of improved legume cultivars is essential. It is important for farmers, particularly those who are resource poor, to have control over their seeds. This requires knowledge and appreciation of alternative technologies for crop and seed production and other related issues. Indigenous seed systems are a rich source of alternatives. The sustainability of rainfed legumes cultivation is heavily dependent on the availability of seed of locally adapted, farmer-preferred varieties at the right time in required quantities and at the right price to meet the demand of resource poor farmers. A novel approach on seed business ventures (SBV) can address the issue. This can be effectively achieved by promoting rural entrepreneurs & community based organisations (CBOs) in seed ventures in seed production system at the village level. It is planned to effectively to incubate and nurture large number of rural entrepreneurs and benefit more number of farmers by commercialization of new seeds and to access the locally acceptable varieties and cultivars of seed. Market Potentiality and Area suitability The target area is four districts of Andhra Pradesh. i.e., Anantapur, Mahabubnagar, Kurnool and Chittore. The target area is very much suitable for both production and marketing. The crops selected for this venture had vast market demand at target area. There are not much competition in terms of private players in the selected crops seed sector, viz., Groundnut, Redgram and Bengalgram. The only major player in this sector is State Seed Development Corporation, a public sector corporation. It is a challenge to meet the growing demand even at present seed replacement rate (SRR), which is very less considering other crops. The demand at times may be actually be satisfied as these are OPVs and it is possible to use grain as seed and there may be in practice seed exchange among farmers. However such practices would have serious negative impact on the productivity leading to very low yields. Demand & Supply Factors that influence demand and supply of seeds • Lack of availability of new and good quality seeds • Poor access to improved high yielding varieties • Legume seeds are not lucrative business due to low seed multiplication ratio, bulky nature and poor storage shelf life • The seed market controlled by middle men and local traders who fleece the farmers with poor quality and credit traps • Statutory regulations and cripple new variety releases

Solution

The project is aimed at consolidation of the learnigs over the years and put the company on the growth trajectory. The project is expected to help the company to scale up its seed production and marketing as the size of the seed market is approximately 3 million quintals the State of Andhra Pradesh alone. The target area of the project consists of four districts in the Rayalaseema region of Andhra Pradesh i.e., Anantapur, Mahaboobnagar, Kurnool, and Chittoor, The target area is very much suitable for both production and marketing. The crops selected for this venture had vast market demand at target area. There is little competition from the private sector seed producers in the selected crops, i.e. Groundnut, Redgram and Bengal gram and Paddy. Major supplier of seed for these crops in the target area is Andhra Pradesh State Seed Development Corporation (APSSDC), a Government of Andhra Pradesh entity. The public sector corporation is unable to meet the growing demand at the present seed replacement rate (SRR) when given that the present SRR is very less when compared to other crops. Taking into consideration of the above factors, the SBV initiatives have been conceptualized, to develop and promote rural seed business ventures at village level in order to bridge the demand and supply gap of open pollinated quality seeds through public, private and people partnerships. Seed Business Incubator provides holistic support to the entrepreneurs in terms of basic seeds, capacity building, quality control, business consultancy, branding and marketing by commercializing new cultivars and benefitting the farmers. Seed business ventures (SBV) is a unique model built on the premise of rural entrepreneurship to promote and address the basic demand and supply gap of quality seeds including of new varieties of seeds for the farmers. This will benefit multiple stakeholders through sustainable rural entrepreneurship, quality seeds at village level; improved productivity in dryland farming and commercialization of seed by research institutes that are partnering with AAI. AAI identifies enthusiastic rural youth or progressive farmers with required capabilities as “seed business entrepreneurs”. Their capacity is improved so that they to able to satisfy the seed demand of at least 5 to 10 villages of the area. These entrepreneurs are trained in seed production, quality control, processing and to work with selected cluster of farmers. Each entrepreneur on an average may work with about 300 farmers and engage them to work on seed production in about 500 acres. The entrepreneurs are supplied with Foundation/ Certified seed of new and improved varieties/hybrids of identified crops. These entrepreneurs organize the seed production programme and procure the progeny for processing and marketing under common brand name. The seed is processed and stored at identified centralized locations for monitoring and ensuring quality till next season. The stored quality seed is marketed either by the entrepreneur or the AAI during the next season in the same cluster of villages or other areas. In order to bring in sustainable revenue model to the entrepreneurs, they are encouraged to establish and operate Aakruthi Knowledge Centers (AKC) in their operation area. The AKC enables them to provide a basket of products and services as per the needs of their client-farmers and other farmers of their operational area.

Example

AAI developed and implementing a unique location specific decentralized seed systems to facilitate farming community to access preferred varieties and quality seeds at farmers door step to increase seed replacement ratio and seed multiplication ratio to enhance 10-15 percent higher productivity. This can be done by creation of network of rural entrepreneurs and building their skills in seed production, processing, quality control, marketing and common branding Theory of Change: Seed Business Venture initiative has been conceptualized by AAI, to develop and promote rural seed business ventures at village level in order to bridge the demand and supply gap of open pollinated quality seeds through public, private and people partnerships. Seed Business Incubator provides holistic support to the entrepreneurs in terms of basic seeds, capacity building, quality control, business consultancy, branding and marketing by commercializing new cultivars and benefitting the farmers.

Marketplace

Size of the targeted seed market is approximately 3million qtls at A.P State itself. Target area is four rayalaseema districts of AP. i.e., Kurnool, Kadapa, Chittoor and Ananthapur initially. Target area is very much suitable for both production and marketing. Crops selected for this venture had vast market demand at target area. Not much competition in terms of private players in the Selected crops seed sector (Ground Nut, Red gram and Bengal gram). Major player in this sector is APSSDC (Andhra Pradesh State Seed Development Corporation), a public sector corporation is unable to meet the growing demand even at present seed replacement rate (SRR), which is very less considering other crops. This innovative business model stand out from competitiveness due to its uniqueness in network, localization, low cost operations and accessibility to rural community   The major seed business houses (Indian & MNCs) are not inclined to do business in the selected crops, i.e., Ground nut, Bengal gram, Red gram and Paddy owing to the reasons like bulkiness of business, heavy logistical charges and thin margins. This created opportunity to emerge innovative business model like creation of entrepreneurial network by roping in local enthusiastic youth by providing skill development programme. Even though the existing corporate houses shows interest, they are unable to compete with this model due to the following reasons. a) Identification of local preferred varieties, localized production, processing and packing with the help of international scientific knowledge backup from ICRISAT b) Cost of entire operations are low compare to seed companies c) Farmers preference is more due to preferred variety, quality and low cost Local business opportunity to the seed producing farmers